Industry Guide
Zero withholding tax on outbound dividends, participation exemption on dividends received, and 65+ double tax treaties make Cyprus one of Europe's premier holding company jurisdictions.
— Key Advantages
Cyprus does not withhold tax on dividends paid to non-resident shareholders — regardless of jurisdiction, subject to anti-avoidance rules. Profits flow to parent companies or individual shareholders without additional levy.
Dividends received by a Cyprus holding company from subsidiary companies (direct or indirect shareholding) are generally exempt from Cyprus CIT and SDC, subject to the standard anti-abuse tests.
Cyprus imposes no capital gains tax on gains from the disposal of shares in companies — a critical benefit when selling subsidiaries, portfolio companies, or restructuring group ownership.
Cyprus has one of the most extensive DTT networks of any small jurisdiction, covering the US, UK, China, India, Russia, UAE, and 60+ others — reducing WHT on royalties, interest, and management fees.
The transfer of assets between Cyprus group companies can be structured without triggering exit taxation in many cases, providing flexibility for group reorganisations.
Cyprus company law is derived from English law, making Cyprus companies familiar to UK, US, and Commonwealth investors and lenders — reducing legal friction in M&A transactions.
— At a Glance
— The Process
Form a Cyprus Ltd as your group holding vehicle with objects covering holding, financing, and IP licensing. Expedited formation in 10–15 working days.
Transfer or issue shares in operating subsidiaries to the Cyprus holding company. We advise on the legal and tax implications of each transfer.
Ensure the holding company has genuine economic substance in Cyprus — local directors, board meetings, and a Cyprus bank account — to support its tax residency claims.
File annual audited accounts (consolidated if required), CIT returns, UBO register updates, and maintain company secretary and registered office in Cyprus.
— FAQ
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